4 Important Rules You Should Know About Loyalty Program

4 Important Rules You Should Know About Loyalty Program

Loyalty programs are a great way to grow your WooCommerce store – or any type of store for that matter – but there are a few key config items you need to be aware of when you set up the program that will help you make it a success.

Even if you’re not using Advanced Coupons for your loyalty program (which, if you’re using WooCommerce, I think you should be!) these 4 items should be configurable regardless of what tool you’re using and can greatly affect the effectiveness of your loyalty program as a tool to grow:

  1. How many points does someone earn for their spend
  2. How many points does it takes to redeem one whole unit of currency (eg. $1 or €1 or whatever your currency is)
  3. What is the threshold to earn points
  4. What is the threshold to redeem points
Loyalty programs equals repeat purchases
Loyalty programs make your customers purchase more!

#1 How Many Points Someone Earns For Their Spend

The first two settings are perhaps the most important to get correct right from the start of your loyalty program.

Perhaps the most important concern to your customers is how many points they will earn for their spending.

Here’s the golden rule with this setting:

From the customer’s perspective, you want it to look as awesome as possible.

Let me ask you, if you spent $15 with a store, what looks better?

Loyalty programs reward example
Your customers will appreciate rewards from loyalty programs

Of course, the second one seems much more substantial as a reward and this is the exact feeling you want to elicit from your customers when you are giving them points in your loyalty program.

If you’re worried about them collecting too many points and getting too much reward, don’t worry, the next one is where we set what the “worth” of a point is.

#2 How Many Points It Takes To Redeem One Whole Unit Of Currency

As a store owner, this is probably the one that you should care about the most.

This ratio that you define determines the exact “worth” of a single point.

Looking at it another way, it tells you how much discount the customer is getting for their subsequent order/s.

At this point, it helps to run the numbers in a hypothetical scenario.

Say Jimmy The Customer buys some product and the order subtotal is $100. product.

If we set our #1 ratio, how many points they earn for their spend to 10 points for every dollar. That means he gets 1000 points for his order.

If we set our #2 ratio, how many points it takes to redeem $1 to 200, this means Jimmy’s 1000 points is effectively worth $5 (1000 points divided by 200 = $5 able to be redeemed).

In this scenario, the loyalty program is giving an effective discount of 5% on future orders which, for most store owners, is pretty easy to live with in exchange for incentivizing customers to make more orders.

Can you now see how this setting gives you control over the effective discount power of your customer’s points?

There are another 2 more important settings or ways you can both incentivize your customers and also retain control over the situations where points can be earned or used.

#3 What Is The Threshold To Earn Points

Thresholds sound like limitations but actually, these two settings can be used in a very positive way for your store.

The first is adding a threshold to the earning of points.

This means that in order for customers to be able to earn the points on an order, they need to first make sure the order is over a certain subtotal.

If they don’t go over the defined subtotal, they don’t get any points at all.

If they do make it past the subtotal, the reward is earning points for their whole subtotal.

The effect this has is huge.

It means your customers will actively try to get over the points threshold in order to get those precious points.

For you, as the store owner, it has the effect of raising your average order value.

#4 What Is The Threshold To Redeem Points

The second threshold is about how many points they need to be redeeming at a minimum in order to be able to redeem.

This means they can only redeem once they’ve stacked up that number of points that you define.

Once they have the correct number of points, they can redeem over the amount that you set if they wish.

The effect of this is ensuring they spend a certain amount with you before being able to claim the discount they owe.

Go Forward And Create Loyalty!

I hope this has been helpful for those of you who are working through the first stages of setting up your loyalty program.

I know you’ll love having the loyalty program and your customers will be thrilled when you introduce it.

Advanced Coupons Loyalty Program for WooCommerce guarantees repeat purchases from customers
Advanced Coupons Loyalty Program for WooCommerce lets you reward your customers easily!

If you are looking for a reliable loyalty program for your store, our Advanced Coupons Loyalty Program for WooCommerce offers tons of exciting features:

  • a full admin dashboard showing the number of points, how many redeemed, and what is working.
  • your customers can self-service redeem points for coupons. As an admin, you can set expiry periods.
  • aside from making orders, customers can earn points by leaving reviews, commenting on blog posts, registering as a user/customer, completing their first order, spending over a set amount, rewarded during a period, and admin adjustment
  • and more!

For concerns, suggestions, and feedback, you may reach out through our support team. We will be happy to assist you anytime.

Go forth and conquer!

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